Why Capstone Turbine's Shares Popped

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of microturbine maker Capstone Turbine(NASDAQ:CPST) jumped 11% today after the company announced a new order.

So what: CleanWorld Partners has ordered a Capstone C800 microturbine and a Capstone Clean Cycle 125 kW waste heat-to electricity generator. The order is expected to be installed this summer and the waste heat will be used in an on-site digester to produce biogas.

Now what: I don't think one order really changes the game for Capstone, and I'd rather see more revenue growth and a profitable quarter before getting too excited. The company has lost $0.09 per share in the past year and analysts are only expecting to break even for fiscal 2014. Capstone has an interesting opportunity but those numbers don't show a good value, and this one order won't bring the company to profitability.

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